Sun Communities (SUI) AI Stock Analysis

• Market Cap: $16.08B
• Dividend Yield: 6.12%
• Average Volume (3M): 945.51K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.29
• Revenue Growth: -14.17%
• EPS Growth: 1097.53%
• Country: US
• Employees: 6,491
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 10.02
• Shares Outstanding: 125,155,464
• 10 Day Avg. Volume: 875,174
• 30 Day Avg. Volume: 945,513
• PEG Ratio: -1.22
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 4.78
• P/FCF Ratio: 17.78
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 7.00
• Enterprise Value/Gross Profit: 14.31
• Enterprise Value/Ebitda: 24.02
• 1Y Price Target: $138.45
• Price Target Upside: 8.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: $143.00 ▲(11.72% Upside)

Sun Communities receives a strong overall score driven by its robust earnings call performance and favorable valuation metrics. While financial performance shows profitability, challenges in revenue growth and cash flow generation are noted. Technical analysis supports a stable outlook.

Positive Factors

Leadership Transition

The appointment of Charles Young as CEO brings fresh leadership with extensive experience in real estate operations, potentially driving strategic growth and operational improvements.

Debt Reduction

Significant debt reduction enhances financial flexibility, reduces interest expenses, and strengthens the balance sheet, supporting long-term financial stability.

Strategic Focus

Focusing on manufactured housing and RV communities aligns with core competencies, potentially improving margins and enhancing the company's financial profile.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates potential market saturation or competitive pressures, which could impact long-term expansion and profitability.

Cash Flow Generation

Reduced cash flow growth may limit the company's ability to invest in new opportunities or return capital to shareholders, affecting future growth prospects.

RV Segment Challenges

Challenges in the RV segment, including declining NOI, suggest operational difficulties and could hinder overall profitability if not addressed.

Sun Communities Business Overview & Revenue Model

Company Description

Sun Communities, Inc. (SUI) is a real estate investment trust (REIT) that specializes in the ownership, operation, and development of manufactured housing communities and recreational vehicle (RV) resorts across the United States and Canada. The company focuses on providing high-quality housing options and lifestyle amenities, catering primarily to families and retirees seeking affordable living solutions in desirable locations. Sun Communities operates a diverse portfolio of properties, offering a range of services including leasing and community management.

How the Company Makes Money

Sun Communities generates revenue primarily through the leasing of residential lots in its manufactured housing communities and RV resorts. The company charges monthly rent to residents who own their manufactured homes, as well as to RV owners who utilize the resort facilities. Additionally, SUI earns income from property management services, amenity fees, and sales of homes and RVs within its communities. Key revenue streams include long-term lease agreements with home residents, transient RV rentals, and sales of new and used manufactured homes. The company also benefits from economies of scale as it continues to expand its portfolio, often acquiring existing communities to enhance its revenue base. Strategic partnerships with home manufacturers and providers of community services further bolster its income potential.

Sun Communities Financial Statement Overview

Summary

Sun Communities shows strong profitability with high net profit margins and improved return on equity. However, it faces challenges in revenue growth and cash flow generation. The balance sheet shows improved leverage management, but maintaining this trend is crucial.

Income Statement

Sun Communities shows a mixed performance in its income statement. The TTM data reveals a decline in revenue growth rate by 7.84%, indicating a challenging period. However, the company maintains a strong net profit margin of 46.85% in the TTM, a significant improvement from previous years, suggesting enhanced profitability. The gross profit margin remains healthy at 61.63%, and while the EBIT margin has decreased, the EBITDA margin is stable at 29.92%. Overall, the income statement reflects strong profitability but faces growth challenges.

Balance Sheet

The balance sheet of Sun Communities indicates a stable financial position with a debt-to-equity ratio of 0.58 in the TTM, showing improved leverage management compared to previous years. The return on equity has significantly increased to 17.94%, highlighting effective use of equity to generate profits. The equity ratio stands at 55.46%, indicating a solid equity base relative to total assets. The company has improved its leverage and profitability, though it must continue managing its debt levels carefully.

Cash Flow

Cash flow analysis for Sun Communities shows a decline in free cash flow growth by 6.41% in the TTM, reflecting potential cash generation challenges. However, the operating cash flow to net income ratio is 0.33, and the free cash flow to net income ratio is 1.0, indicating that the company generates sufficient cash relative to its net income. While cash flow generation has slowed, the company maintains a strong cash position relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.75B	3.20B	3.18B	2.93B	2.26B	1.38B
Gross Profit	1.34B	1.50B	1.49B	1.42B	1.15B	768.90M
EBITDA	800.80M	1.10B	771.60M	1.11B	1.10B	666.70M
Net Income	1.30B	89.00M	-213.30M	242.00M	380.20M	131.61M
Balance Sheet
Total Assets	13.36B	16.55B	16.94B	17.08B	13.49B	11.21B
Cash, Cash Equivalents and Short-Term Investments	1.46B	47.40M	29.20M	200.10M	252.70M	202.07M
Total Debt	4.28B	7.35B	7.78B	7.13B	5.60B	4.69B
Total Liabilities	5.83B	9.36B	9.77B	9.20B	6.76B	5.58B
Stockholders Equity	7.41B	7.08B	7.08B	7.81B	6.62B	5.53B
Cash Flow
Free Cash Flow	807.10M	861.00M	790.50M	734.90M	753.60M	543.29M
Operating Cash Flow	807.10M	861.00M	790.50M	734.90M	753.60M	543.29M
Investing Cash Flow	5.35B	-295.20M	-935.00M	-3.08B	-2.35B	-2.50B
Financing Cash Flow	-4.81B	-571.60M	80.30M	2.35B	1.57B	2.00B

Sun Communities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 128.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUI, the sentiment is Positive. The current price of 128 is above the 20-day moving average (MA) of 127.78, above the 50-day MA of 125.85, and above the 200-day MA of 122.28, indicating a bullish trend. The MACD of 0.87 indicates Positive momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 30.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUI.

Sun Communities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUI	75 Outperform	$16.08B	12.56	-1.51%	6.12%	-14.17%	1097.53%
ESS	71 Outperform	17.75B	21.40	14.20%	3.74%	7.56%	54.15%
ELS	69 Neutral	12.30B	32.80	21.08%	3.29%	-0.03%	1.00%
UDR	68 Neutral	12.36B	97.31	3.97%	4.59%	2.29%	-4.89%
CPT	67 Neutral	15.07B	74.30	3.40%	3.88%	0.76%	-60.70%
UMH	63 Neutral	1.28B	112.71	2.37%	5.85%	8.39%	0.00%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Sun Communities Corporate Events

Sun Communities Appoints New CEO Charles D. Young

On July 23, 2025, Sun Communities, Inc. announced the appointment of Charles D. Young as Chief Executive Officer, effective October 1, 2025, succeeding Gary A. Shiffman, who will transition to Non-Executive Chairman of the Board. Mr. Young brings over 25 years of experience in real estate operations and investment management, having previously served as President of Invitation Homes Inc. Under Mr. Shiffman’s leadership, Sun Communities grew significantly, achieving a market capitalization of over $16.5 billion and expanding its portfolio to over 500 communities. The transition marks a new chapter for the company, with expectations of continued growth and value delivery for shareholders and stakeholders.

Sun Communities Highlights Strategic Focus on MH and RV

On June 2, 2025, Sun Communities, Inc. released an investor presentation highlighting its strategic focus on MH and RV communities, following the sale of its Safe Harbor Marina properties. This move aims to simplify the company’s business strategy, improve its financial profile, and increase its exposure to annual income streams. The company anticipates that this transaction will enhance margins, improve overhead efficiency, and strengthen its balance sheet, positioning it as a ‘pure play’ MH and RV operator.